Language:

Search

Tesla's quarterly results miss estimates after price cuts hit bottom line

  • Share this:
Tesla's quarterly results miss estimates after price cuts hit bottom line

Tesla's second-quarter margin missed analysts' estimates as price cuts and incentives to spur sagging demand continued to hurt the bottom line while the company intensifies its self-driving technology efforts, it said on Tuesday.

 
 

Tesla recorded automotive gross margin excluding regulatory credits of 14.65% in the second quarter, compared with estimates of 16.29%, according to 20 analysts polled by Visible Alpha.

It was the lowest quarterly margin in more than five years, and shares of the electric-vehicle maker were down about 4% in after-hours trading.

TESLA CYBERTRUCK MAKING INROADS ON THE ROAD

 
Tesla Shanghai store

Tesla's quarterly margin missed analysts' estimates. (Photo by Costfoto/NurPhoto via Getty Images / Getty Images)

The results were a reminder of headwinds facing the company in its main auto business, even as CEO Elon Musk reoriented the carmaker to self-driving technology, helping Tesla stock recoup most of its losses this year.

TickerSecurityLastChangeChange %
TSLATESLA INC.246.38-5.13-2.04%

The company on Tuesday reported revenue of $25.50 billion for the three months ended June, compared with $24.93 billion a year earlier. Analysts on average had estimated $24.77 billion, according to LSEG data.

ELON MUSK SAID TESLA MOVED ROBOTAXI EVENT ‘FOR IMPORTANT DESIGN CHANGE’

 
Tesla vehicle showroom

Tesla said its new vehicles for 2025 are on track. (Photo by Joe Raedle/Getty Images / Getty Images)

Tesla's sales of regulatory credits nearly tripled to $890 million in the second quarter from a year earlier.

 

"Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025," Tesla said in a statement.

Tesla reiterated that cost reductions for new vehicles would be less than expected.

 

GET Gxstocks ON THE GO BY CLICKING HERE

Net income was $1.48 billion in the second quarter, compared to $2.70 billion a year ago.

Adjusted earnings of 52 cents per share missed the Wall Street consensus of 62 cents, as calculated by LSEG.

 
Olivia Smith

Olivia Smith

News: Get latest stock share market news, financial news, news, economy news, company news, politics news, breaking news at Business Standard. Catch all the latest Nifty Sensex news live updates.